RebelCapitalist: Financial Information for the Rest of Us

Financial Genocide

Oct 04, 2010 | By: Mr_Blue | Tags: economy, foreclosures, consumer debt, financial genocide

I first heard the term Financial Genocide used by radio show host Mike Malloy. An appropriate term to describe what is happening to working class families in the U.S. Many of the problems that exist today existed prior to the Great Recession and were only exacerbated by it.

First, what is ‘genocide’. According to the dictionary ‘genocide’ means “the deliberate and systematic extermination of a national, racial, political, or cultural group.” That’s what is happening from financial/economic aspect - a deliberate and systematic extermination of working class families. Is this deliberate and systematic extermination the intent of those with power - the oligarchy? Hard to say but certainly the policies determined by those with the power have resulted in this systematic extermination of working class families. The oligarchy is more than willing to fight to maintain this status quo that is devastating working class families.

Even before the Great Recession, income inequality was already extremely high. Most of the income gains over the last several decades were contentrated at the top end of income brackets. It was definitely a case of rich getting richer and middle and poor getting poorer.

Stagnate wage growth was also well documented before the Great Recession. This lack of wage growth was substituted with more and more consumer debt that was at the root cause of the financial crisis. But it has been more than just lack of wage growth. Starting in the 1970s productivity gains were no longer being shared with workers. It use to be that harder people work the more money they earned - productivity & wages grew together. No longer, these productivity gains were being captured mainly at shareholder and executive management levels.

Then the Great Recession. Income inequality and stagnate wage situations didn’t change and may have actually gotten worse. Retirement savings of working class families has been devastated - estimated $2 trillion in value gone. High unemployment/underemployment. Over 1 million in home foreclosures - working class families most valuable asset. Poverty increased. Use of food stamps rising. Shall I go on?

All of this is a result of policies determined in Washington by politicians and their oligarch masters. Outlook for change in this status quo doesn’t look good. Both political parties are part of the problem - either they don’t have the courage (most Democrats) or actually like the status quo (corporate Democrats + Repuglicans).

If what we want to avoid or stop this Financial Genocide we are going to have to demand it stop or else. What that “or else” is means different things to different people. But change won’t happen unless we come together and force a change in policy.

Good luck.